“What was once rare is now main stream. The stigma associated with a short sale is nearly dead. A vast number of Americans today see a short sale not as a failing of the homeowner, but a moral responsibility on the part of the banks to clean up their own mess,” says Tania Michaels.
A recent poll shows the majority of Americans blame Wall Street for the nation’s current economic predicament. (1) Banks made risky loans which were bundled and sold off to institutional investors (e.g., insurance companies, Fannie Mae, Freddie Mac) who then were left holding the bag. What remains is a plethora of inflated loans in default to be reckoned with. When compared with managing foreclosed real estate, short sales have been analyzed by the banks as the lesser of the two evils.
In a short sale, the lender agrees to allow the borrower of the mortgage to sell the property for less than the balance of the mortgage. A short sale is not a new development in the world of real estate finance but it has never been more embraced by the banking industry than it is now. Seen as the more profitable mechanism to maximize collection recovery, short sales are now even being promoted by the banks to homeowners with real hardships.
“Banking insiders say they make an average of 10% more on a short sale than a foreclosure. We are seeing banks like Bank of America offer up to $30,000 as a ‘relocation incentive’ to a homeowner if they successfully complete a short sale. They have calculated that it is more profitable to give a homeowner anywhere from $2,500 to $30,000 than it is to take the house back in a foreclosure. The banks don’t have a problem with short sales. They are instructing homeowners to hire a Las Vegas short sale agent and complete the process,” says Michaels.
A common misconception by homeowners is that they don’t have to qualify for a short sale. That is almost never the case. The borrower must provide evidence of an involuntary hardship such as unemployment, under employment, or illness if they want to unwind the contract they signed with the bank. See more acceptable short sale reasons.
“We’re living in unprecedented economic times. A short sale means that both parties, the bank and the borrower, have agreed to settle a debt. There’
Michaels has developed a report titled, “Missing Mortgage Payments? It’s Never too Late!”, which can be found on her website. The report was developed to give every homeowner in Las Vegas their full range of options if they are in default or are headed that way.
“We closed an SLS short sale in Summerlin, Las Vegas in 2.66 months. The borrower had a verifiable hardship. Career wise, they had been displaced. There was no longer a need for their position and they were scrambling trying to find an income and pay their bills. This is the fallout of an artificial economy and it’s more common today than people think. This problem is not partial to any neighborhood in Las Vegas,” says Michaels.
The Summerlin property required a hefty number of repairs. Both the buyer and the seller agreed that the seller would not be able to make any repairs and the property was sold “As Is.” A waiver of the bank’s right to pursue the seller for a deficiency judgment was obtained by Michaels for her client. The homeowner did not come out of pocket with any costs associated with the short sale.
“Many homeowners have told me they have been willing to go the distance on the complex and delicate process of a short sale because they had a significant amount of trust their in real estate agent. I believe there is no better criteria for selecting a real estate agent,” states Michaels.
Certified Las Vegas short sale agents are those who have proactively sought out the most respected designations and networks in the industry to help clients within the complicated and highly charged default property arena. Tania Michaels is a certified Las Vegas short sale agent with the CDPE® designation. Adept at negotiating with lenders, Michaels is considered an expert in the short sale industry by her clients and her peers.
Tania Michaels is a REALTOR® and a Las Vegas CDPE® short sale agent. This multilingual, multifaceted, award-winning 16-year real estate professional in Las Vegas, specializes in representing sellers in the sale of their property (including short sale negotiations)
If you have an interest in selling your Las Vegas property, Tania Michaels can be reached through her website at MichaelsRealEstate.com
(1) USA Today Poll, 10/18/2011: http://www.usatoday.com/